A tough economy? Don’t forget to invest in your High Potential talent.

Another economic downturn? Looks like it.

Maybe it is a sign of my age, but I have ridden the economic roller coaster a few cycles in my life. Let me tell you what I have learned.

If you haven’t yet felt it yourself, yes, the economy is rough. According to FactSet data, S&P 500 companies grew their revenue by 5.3% in the second quarter, which is significantly below the five-year average of 6.9%. Over the past three months, the number of new jobs in the US has declined, while the unemployment rate, now 4.3%, has risen to nearly a full percentage point above its post-pandemic low. And companies are beginning to slash budgets through reductions in force initiatives, hiring freezes, and training budget eliminations.

Companies are going into defensive mode.

But what if you didn’t just think defense? But look to playing offense instead?

This means not pulling back all your people and talent development budgets.

This means recognizing and investing in your High Potential talent, maybe when other companies aren’t.

Why?

These are the leaders who hold your company together. Who put in the extra effort to drive results.

And who have the wherewithal and mindset to strategize and build innovative solutions when things get tough.

High Potential talent is who your workforce is watching to see how to react to the situation.

The benefits of a High Potential program go even deeper.

It’s a way to recognize and retain key and rising key leaders. By giving them a chance to continue personal development, you show appreciation when sometimes it is often forgotten. This talent base will feel recognized and be even more invested in helping the company succeed.

And, when senior leadership communicates messages in a time of challenge, High Potential leaders can be change advocates. With a High Potential program in place, your C-Suite can meet with the High Potential group to communicate changes, brainstorm solutions, and gain buy-in that can spread across the organization.

There’s also something to be said for group bonding. Bringing a cohort of High Potential talent together often unifies the group and elevates their ability to positively influence each other AND the organization. An effective program will have these leaders work together to help find and implement creative solutions that meet your business needs.

High Potential leaders are often mentors to others in the organization. As you recognize and invest in them, their positive outlook in a time of challenge spreads organically.

The adage, “People are our greatest asset” is often said but may not always seem genuine. If this is how your organization sees their employees, then definitely invest in the high potential people who are the current and future of your company.

We’d love to help start a conversation about how a High Potential program could be right for you.